Kirk Chisholm – A Paradigm Shift Is Happening in the Markets

BIO: Kirk Chisholm is a wealth manager and principal of Innovative Advisory Group and Host of the popular podcast Money Tree Investing. STORY: Kirk shares his thoughts regarding the current status of the global markets. LEARNING: Always check your assumptions. Cash is now safer than bonds. Now is not the time to buy.  “Everything you think you know about investing is now wrong.”Kirk Chisholm  Guest profile Kirk Chisholm is a wealth manager and principal of Innovative Advisory Group and Host of the popular podcast Money Tree Investing. He and his firm specialize in Risk Management, Inflation, Self Directed IRAs, Alternative Investments, and advanced tax strategies. They truly are outside-the-box thinkers in everything they do, and as you will hear on this show, Kirk is a unique and all-around interesting guy.Worst investment ever Kirk is not new to the My Worst Investment Ever podcast. He made a previous appearance on episode 138. You can go back and listen to his experience of investing internationally in a Chinese coal company. Today he doesn’t delve into his investment mistakes but rather shares his thoughts regarding the current status of the global markets.We come to our opinions by someone else giving them to us Kirk believes that we form our opinions based on other people’s points of view. You may imagine that you think independently, but that’s actually not true. What happens is you do something, and your brain justifies it afterward. When you form an opinion, most likely it’s after listening to someone else’s point of view. For instance, you may have been watching the news and then forming an opinion. That’s how our brain works. When you understand this, you’ll be able to look at the world differently.There is a paradigm shift going on in the markets A paradigm shift is happening in the markets, and most people either aren’t aware of it or they’re not respecting it. For the last 40 years, we’ve had declining interest rates and declining inflation. In the US, interest rates and inflation peaked in 1981 and have been going down for 40 years. In the last 40 years, we’ve had an enormous bull market in bonds, stocks, real estate, and pretty much everything. We’ve had asset growth, wealth creation, and abundance across the spectrum for the last four years. However, this year the paradigm has changed. We have inflation at eight and a half percent, and the old paradigm won’t work in this type of market. The old paradigm supported the buying and holding strategy and viewed cash as bad. This strategy, however, doesn’t work in a recession or a bear market. It’s just a great strategy during a bull market.Always check your assumptions Investors have been making assumptions based on the 40-year market. In large part, investors assumed that real estate always goes up, which was wrong. This assumption caused the whole system to implode. So we always have to check and reassess our assumptions. Better still, if you understand the inflation part, you’re gonna be so far ahead of everybody.Cash is now safer than bonds Bonds have moved from a safe investment to a risky one. Cash is now safer. Stay away from the growth areas and focus more on the value areas because value tends to do well in